Entities related to The Carlyle Group (NASDAQ:CG) Inc. have recently sold a substantial amount of QuidelOrtho Corp (NASDAQ:QDEL) stock, according to the latest SEC filings. The total value of the shares sold amounts to over $4.9 million, with the transactions taking place over a range of prices between $33.9402 and $35.1464.
The sales were executed in multiple transactions across two dates, June 21 and June 24. On June 21, a total of 68,580 shares were sold in two separate transactions, with prices per share of $34.9078 and $35.1464 respectively. Similarly, on June 24, a combined number of 71,713 shares were sold at prices ranging from $33.9402 to $35.0925 in three separate transactions.
These transactions were carried out under a Rule 10b5-1 trading plan, which was adopted on May 12, 2024. Such a plan allows company insiders to sell shares over a predetermined period of time, providing a defense against claims of trading on nonpublic information, as long as the plan was established when the insider was not in possession of material non-public information.
The entities involved in these transactions are part of a complex ownership structure, with Carlyle Group Inc. being the ultimate parent company. The intricate relationship includes Carlyle Holdings II GP L.L.C., Carlyle Holdings II L.L.C., CG Subsidiary Holdings L.L.C., TC Group Cayman Investment Holdings, L.P., TC Group Cayman Investment Holdings Sub L.P., TC Group VI Cayman, L.L.C., TC Group VI Cayman, L.P., and Carlyle Partners VI Cayman Holdings, L.P.
Following these transactions, the entities continue to hold a significant number of QuidelOrtho shares, indicating a continued vested interest in the company's performance. The exact distribution of ownership can be detailed upon request, as indicated in the footnotes of the SEC filing.
Investors and market watchers often pay close attention to insider selling as it may provide insights into an insider’s perspective on the stock’s value. However, these transactions do not necessarily signal a lack of confidence in the company's future prospects, as they may also be part of personal financial management strategies by the insiders.
QuidelOrtho Corp, the issuer of the common stock, is a company specializing in in vitro and in vivo diagnostic substances, providing important healthcare solutions.
The SEC filing was signed by authorized representatives of The Carlyle Group Inc., indicating compliance with the necessary legal and regulatory requirements for such disclosures.
In other recent news, diagnostics company QuidelOrtho reported mixed results for Q1 2024, with total revenue decreasing to $711 million, primarily due to lower COVID-19 related sales. However, excluding COVID-19 products, the company experienced a 6% growth in constant currency, particularly in the Point-of-Care and Molecular Diagnostics segments. Amid these developments, QuidelOrtho is undergoing a cost reduction phase, including significant headcount reductions, to save around $100 million annually.
The company's new President and CEO, Brian Blaser, is focusing on enhancing customer satisfaction, profitability, and market competitiveness. Given these changes, QuidelOrtho has suspended its financial guidance to allow for a comprehensive reassessment of the business strategy for the remainder of the year.
Despite the decline in adjusted EBITDA margin and diluted EPS, the company anticipates improved cash flow in the second half of 2024. It is important to note that these are recent developments and the company plans to provide updated guidance later in the year after a thorough review by the new CEO.
InvestingPro Insights
In light of the recent insider selling at QuidelOrtho Corp (NASDAQ:QDEL), it's important for investors to consider the broader financial context of the company. According to InvestingPro data, QuidelOrtho currently has a market capitalization of approximately $2.2 billion. The company's price-to-earnings (P/E) ratio stands at -1.25, reflecting investor sentiment about its earnings potential. More specifically, the adjusted P/E ratio for the last twelve months as of Q1 2024 is -9.15, indicating that the market may have concerns about the company's profitability in the near term.
Despite these challenges, QuidelOrtho's gross profit margin remains strong at 48.13% for the same period, suggesting that the company is able to maintain a substantial markup on its products. However, the company's revenue has seen a decline of 7.95% over the last twelve months as of Q1 2024, which may be contributing to the negative sentiment reflected in the P/E ratio.
Looking at the company's stock performance, QuidelOrtho is trading near its 52-week low, with the price representing only 36.92% of the 52-week high. This could be an indicator of undervaluation, which is further suggested by the fact that the stock is in oversold territory according to its Relative Strength Index (RSI), one of the InvestingPro Tips that might interest potential investors.
For those considering adding QuidelOrtho to their portfolio, it's worth noting that while the company operates with a significant debt burden, analysts predict it will be profitable this year. Additionally, the company has a high shareholder yield, which could be appealing to investors looking for companies that return value to shareholders. For a more comprehensive analysis, there are additional InvestingPro Tips available, including insights into analyst earnings revisions and the company's performance over the last month and six months.
Investors interested in exploring these metrics further can find more InvestingPro Tips at https://www.investing.com/pro/QDEL. For a limited time, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of analysis and data to inform investment decisions.
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